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**Puget Sound Industrial Market Shows Signs of Improvement Heading Into 2026**
The Puget Sound industrial real estate market exhibited signs of stabilization and recovery as 2025 came to a close, according to a recent report by CBRE.
The region recorded positive net absorption for the quarter, totaling 386,969 square feet—marking a notable shift from previous periods. Despite this growth in occupancy, the vacancy rate climbed slightly to 10.4%, an increase of 40 basis points from the previous quarter and up 1.8% year-over-year.
The uptick in vacancy was largely attributed to new industrial developments entering the market, including the recently delivered Bridge Point Tacoma project, which added approximately 1.81 million square feet of space to the regional inventory.
Rental trends showed modest downward movement, with the average direct asking rate declining marginally to $1.15 per square foot per month.
Leasing activity continued to reflect a flight to quality. Tenants remained focused on securing space in modern Class A facilities, while Class B and C assets struggled with slower leasing velocity. Many tenants are consolidating operations or deferring leasing decisions in response to persistent economic uncertainty. This dynamic has placed additional pressure on older inventory. Similarly, port-driven properties echoed a cautious demand environment.
In related news, Carter Andrus, Chief Operating Officer of Prologis, will participate in a keynote interview at Connect Industrial Midwest, scheduled for Tuesday, March 10, 2026, at Joe’s Live in Rosemont, IL.
This story originally appeared on Connect CRE.
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